RWE (RWE) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 financial performance at the upper end of guidance, with adjusted EBITDA of €5.1 billion and adjusted net income of €1.8 billion, driven by strategic priorities and robust project delivery.

• Announced a €35 billion net investment plan for 2026–2031, focusing on US power generation and German flexible generation, and targeting 12% annual EPS growth and 10% annual dividend growth.

• Confirmed dividend proposal of €1.20 per share for 2025, with a targeted 10% annual increase going forward.

Financial highlights

• Adjusted EBITDA for 2025 reached €5.1 billion, at the upper end of guidance; adjusted net income was €1.8 billion; adjusted EPS was €2.48.

• Leverage ratio at 2.1, below guidance range, reflecting prudent balance sheet management.

• €1.5 billion share buyback program underway, with 34 million shares repurchased at an average price of €36.

• Book gain from the sale of a UK data center project contributed to 2025 earnings.

Outlook and guidance

• €35 billion net investment planned for 2026–2031, targeting 65 GW generation capacity and EPS growth to €4.40 by 2031.

• 2026 adjusted EBITDA expected between €5.2–5.8 billion; adjusted net income €1.55–2.05 billion; EPS midpoint €2.55.

• Dividend for 2026 planned at €1.32 per share, a 10% increase, with a payout ratio of approximately 50%.

• Targeting 12% annual EPS and EBITDA CAGR through 2031.

• Leverage ratio expected to move closer to 3x as investments ramp up, staying at the lower end of 3–3.5x net debt/EBITDA.